31 October 2016
Banks have wanted to draw a line under the PPI saga for the last few years. But it looks like they may be disappointed on two fronts.
One is the announcement of a potential June 2019 deadline, a date that is too far in the future according to banks. They wanted a summer 2018 deadline, at the latest.
The other is the fact that there could be £22 billion in PPI pay outs yet to make, something that will hit all banks, lenders and financial institutions hard.
The news of spring 2016 was not great for the banks as the City watchdog, the Financial Conduct Authority released figures that showed the extent of the PPI saga.
£23 billion has been paid out since 2011 by banks to customers after mis-selling them the insurance product, payment protection insurance (PPI), tagged on to loans and other products.
But of this figure, half is interest meaning that only £11.5 billion of the premiums have actually been repaid.
You may be wondering what this actually means. The answer becomes a little clearer when you realise that between 1990 and 2010, £44 billion of PPI policies were sold.
What isn't immediately clear, is the scale of the mis-selling although it is acknowledged that it is a significant proportion.
If, say experts, 75% of these policies were mis-sold, then that leaves another £22billion worth yet to be repaid to consumers.
For many banks, they have already said that the interest charges in PPI claims is a fairly significant issue, especially now that some cases they are dealing with go back to the 1980s.
The potential for £22 billion to be added to the bank's woes will only happen if customers make a claim for PPI compensation.
The truth is that many more people are entitled to claim than were first thought. If you have PPI, the likelihood is that the policy was mis-sold to you. And you should claim your money back!
We are a claim management company specialising in compensation claims for mis-sold PPI. We can help you to put together your claim, submitting it your bank and ensuring that you get every penny back to which you are entitled.
We charge a small fee for this service and we have a high success rate (over 93%) so you have peace of mind that we assess your claim thoroughly before proceeding. And we do all this on a no win, no fee basis.
Call us for a no obligation chat to find out more.